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Internet Advertising Analysis Part 10; Broadband brings Rich Media and Branding

 

Rich media brought on by broadband may lead to higher response rates, better branding capability, and more creative possibilities. A convergence of television and the Internet with interactive advertising is likely to lead to larger budget commitments. The largest advertisers are only just beginning to enter the online fray. The new interactive media will likely lead to significant perturbations in their business models, brands, and media choices, brought about by a new understanding of their customers. The future interactive agency and advertiser must be ROI-driven. To do so, they must be able to integrate campaigns, data, and technology across a wide variety of new, traditional, and converged media across geographies and cultures.

The “tail may wag the dog” as information gleaned from interactive advertising will have implications for other marketing decisions on pricing, positioning, and promotion. We will soon enter the next round of the Internet advertising battle as broadband reaches the masses; the Internet becomes more ubiquitous and wireless; televisions become more interactive; video/data/voice appliances converge; brand advertising and direct marketing practices integrate; domestic brands, commerce and marketing become even more global; and big marketing spenders spend more money online. Many companies that are well-positioned today will need to continue to evolve to take advantage of the opportunities. We believe that the success of Internet advertising companies will largely be driven by how they maneuver among the coming developments.

 

Technology: Broadband Brings Rich Media

One of the key issues playing out in the next round of Internet advertising will be broadband technology. Roughly defined as a minimum of 128 KBPS speed and an always-on connection, broadband will allow more data to reach consumers faster. This is certain to increase usage of the Internet, causing more ads to be viewed. However, for advertisers, the real importance of broadband is that it brings rich media to the Internet. Rich media is graphicintensive, animated, audio-enabled, and interactive. There is no question that broadband is coming. The deployment of digital subscriber line (DSL), cable modem, and Direct Broadcast Satellite (DBS) technologies has assured that broadband will reach many users in the coming years. Further, many business offices already have broadband technologies deployed. Rich media, brought on by broadband, will allow advertisers much greater creativity.

This will be seen in the form of greater animation, audio features, and interactivity. Banners currently have some degree of all of these features, but the animation is jerky, the audio is often interrupted, and the interactivity is limited. Faster broadband connections will change this. More detailed graphics will be possible, with more animation. For instance, movie clips or television-like advertisements can be viewed on the Web. In the past, these had to be downloaded through a lengthy process, given the limited speeds of telephone lines. Broadband will allow much faster downloads, as well as streaming media that is played in real time. Further, bandwidth “sniffers” are now being used that determine the amount of bandwidth that a user’s machine can handle and then deliver the ad with the maximum possible amount. Not only video, but audio too, will be enhanced by broadband. Broadband streaming will allow advertisers to interact with consumers on the site where the ad appears, rather than forcing the consumer to click on a link that steers them away from their original Web destination. Interactive ads, games, and other forms of entertainment can be imbedded in a site’s advertising, allowing users to interact with the ad.

 

 

Figure 14 Advertising Awareness Is Increased by the Use of Rich Media (% Who Remembered Ad)

 

Figure 14 Advertising Awareness Is Increased by the Use of Rich Media (% Who Remembered Ad)

 

 

Broadband will likely bring new types of advertising to the Internet, as well as enhancing some of the more traditional forms. Banners will be able to move without the traditional jerkiness. Additionally, they will have audio features, allowing users to hear jingles or music samples. Banners, interstitials, and sponsorships will become much more interactive. Instead of simply being linked to an advertiser’s site or to a selling window, broadband will allow users to play entire ads on the screen without leaving the current page. This feature makes it much more likely that users will read about a product than if they were transported to a new page.

Expandable windows are gaining popularity on the Web. These ads appear to be normal banners but expand to reveal a much larger frame for viewing when a user clicks on the ad. This keeps the screen from getting cluttered and also allows the advertiser to really show off its wares to an interested consumer. Interstitials will likely grow in popularity, thanks to broadband. These pop-up windows are perfect for playing animated ads. Further, they can be immediately closed if the consumer is uninterested. Studies by Millward-Brown Interactive (a unit of WPP Group’s Millward-Brown International) have found that large animated ads produce impressive awareness and brand recall. Greater animation, larger presence on the user’s screen, and interactivity are all possible as a result of broadband technology.

 

 

Figure 15 Brand Recognition Is Increased Through the Use of Rich Media (% Who Remembered Brand)

 

Figure 15 Brand Recognition Is Increased Through the Use of Rich Media (% Who Remembered Brand)

 

Continue with:

Part 11, Rich Media Studies , Part 12; What Could K.O. Internet Advertising? , Part 13; Email ,

Part 14; Advertising or Direct Marketing? , Part 15; What Does the Internet Advertising Market Consist of? , Part 16; Rich Media still has some drawbacks ,

Part 17 Inventory and Concentration , Part 18; Market Share and Concentration Data , Part 19; Global Impact, Part 20; Residential and Business Use ,

Part 21; Pageviews , Part 22; Advertising vs. Direct Marketing , Part 23; Investment Conclusion

 

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